Best Banks with No Overdraft Fees in 2024

Overdraft fees have dwindled in recent years, due to consumer outcry, government scrutiny, and fintech competition. But in 2022 alone, consumers still shelled out more than $7.7 billion in NSF fees.

Double and triple-checking your balance can help prevent these fees, but you can avoid them altogether by banking at an institution that doesn’t charge overdraft fees in the first place.

We’ve rounded up the best banks with no overdraft fees, looking into their overdraft policies, additional features, fees, and customer experience.

8 Best Checking Accounts with No Overdraft Fees

Here are eight banking options with no overdraft fees for you to consider.

  1. Discover Cashback Debit Account
  2. Capital One 360 Checking® Account
  3. Ally Spending Account
  4. Axos Bank Rewards Checking
  5. Alliant Credit Union High-Rate Checking
  6. Wealthfront Cash Account
  7. Citi Access Checking
  8. Truist Bank One Checking

1. Discover Cashback Debit Account Discover® Bank logo

Discover offers a free checking account with no monthly maintenance fees and no minimum opening deposit or balance requirements. Discover doesn’t charge for its overdraft protection, either.

You can designate one of your accounts to cover purchases if your Discover checking account has insufficient funds. If there isn’t enough money in your linked account, Discover will decline the attempted transaction, without charging a fee.

Additionally, the fee-free Discover checking account comes with several perks. This includes a large, fee-free ATM network of over 60,000 Allpoint and MoneyPass ATMs and 1% cash back on up to $3,000 of debit card purchases each month.

2. Capital One 360 Checking® Account capital one bank Logo

The Capital One 360 Checking account charges no overdraft fees or non-sufficient fund fees. Capital One typically declines transactions that would result in an overdraft.

It also offers a No-Fee Overdraft program, where the bank may cover a transaction, and then allow you to deposit sufficient funds without charging a fee.

The 360 Checking account has no minimum deposit requirements, no monthly service fees, and your account balance earns interest. Additionally, you can access your payroll direct deposit up to two days early.

On the flip side, there are limited Capital One bank branches in the US, and Capital One will not reimburse out-of-network ATM fees. Fortunately, there are over 70,000 free ATMS nationwide that you can access.

3. Ally Spending Account ally bank Logo

The Ally Spending account, formerly branded as the Ally Interest Checking Account, is a free online checking account with no overdraft fees.

You can use the free Overdraft Transfer Service to transfer money from your Ally savings or money market account. Additionally, Ally offers CoverDraft, which will cover overdrafts of up to $250 and gives you a 14 grace period to repay the balance.

It offers early direct deposit, 43,000+ AllPoint ATMs, and reimburses other out-of-network ATM fees up to $10 a month. Additionally, there are no minimum deposit or minimum daily balance requirements.

The Ally Spending account offers interest rates tiered based on your account balance. You can also open a high-yield savings account, MMA, CD, or investment account.

4. Axos Bank Rewards Checking axos bank Logo

Axos Bank is an online bank that offers several different checking account options, including a popular Rewards Checking Account.

You can cover your account by linking a savings account or applying for an overdraft line of credit. If you opt out of those services, Axos will pay or decline overdraft transactions at its discretion at no charge to you, but you’ll be expected to fund your account immediately.

Axos Rewards Checking has a lot to offer, including an extremely competitive APY, routine welcome bonuses, and no monthly fees or minimum balance requirements. While there are no branches, Axos customers have access to 91,000 fee-free ATMs.

5. Alliant Credit Union High-Rate Checking alliant credit union Logo

Alliant Credit Union offers a free checking account with no overdraft charges or non-sufficient funds fees.

If you enroll in free overdraft protection, Alliant will automatically transfer money from your savings account to avoid NSF fees. You can also enroll in Courtesy Pay to let Alliant cover transactions that extend beyond your overdraft protection with no fee, though your balance will be due immediately.

Alliant customers can earn interest on their checking account balance of any amount and access a network of over 80,000 free ATMs. The bank also provides $20 of out–of–network ATM rebates per month.

6. Wealthfront Cash Account wealthfront Logo

Wealthfront charges no monthly account fees or overdraft fees, and it offers industry-leading APY. Account holders also enjoy unlimited transfers and same-day withdrawals.

Wealthfront may decline transactions that would overdraft your account rather than charging fees. You can also set up automated savings to pad your account with additional cash and avoid potential overdrafts.

Wealthfront is an automated investment service and not a bank. It spreads out your deposits or investments across up to twenty banks, and your funds are FDIC insured up to $8 million.

7. Citi Access Checking citibank Logo

Citibank was one of the first major banks to eliminate overdraft charges, returned items, and overdraft protection fees. While rival Chase Bank charges $34 per NSF, Citi did away with these charges in June of 2022.

Any debit card transaction that overdraws your Citi Access account, or puts it at risk for being overdrawn, will be declined. Additionally, overdraft protection is available at no charge with a linked Citi savings account or money market account (MMA).

There is a monthly fee of $5, but it can be easily waived. A Citi account gives you access to more than 600 physical branches throughout the country and 60,000+ free ATMs.

8. Truist Bank One Checking truist bank Logo

Truist Bank is another solid option if you’re looking for an NSF-free account. Truist is one of the top ten largest banks in the United States based on its assets. It also has more than 2,000 branches across 17 states throughout the Southeast.

Truist One Checking has no overdraft fees. The bank declines transactions that would put your account balance in the negative. However, it also offers a $100 Negative Balance Buffer to qualifying customers, which covers up to $100 of overdrafts.

The Truist One Checking account has an easily waivable monthly fee and a $50 minimum opening deposit. The account offers tiered interest rates, credit card bonuses, and other perks based on your account balance.

How to Avoid Overdraft Fees

In most cases, overdraft fees are avoidable. Consumers can avoid these fees by using some easy measures.

  • Set up direct deposit: This will minimize or eliminate monthly banking fees and will give you quicker access to your paycheck than a paper check.
  • Monitor your balance: Keep track of your debit card transactions, bill payments, and recurring monthly payments. You can call your bank or log on to view your balance. Keep in mind the balance you view may not reflect any pending transactions.
  • Set up low-balance alerts: Many banks will send you email or SMS alerts when your balance drops below a certain threshold. Make sure you’re enrolled!
  • Cushion your account: Keep an extra $100 in your account that you never spend just to be safe.
  • Link a savings account: Connect an account you can link to your checking account as a line of credit for accidental overdrafts. Check with your bank on what terms apply for you to link that savings account to your checking.
  • Consider a switch: Change banks or financial institutions. Varo Bank, Chime, and Betterment are just a few alternate checking account options that charge no NSF fees.

Frequently Asked Questions

Can I Get Overdraft Fees Waived?

In some instances, yes. Contact your bank and ask them if they’ll waive overdraft fees You can stop by a branch location, call, or place a request online or in the bank’s mobile app.

Typically, calling customer service will be your best line of defense. Call the main number listed on the back of your debit card and talk to an agent.

How Much Do Banks Allow an Account to Overdraft?

The amount depends on your bank and the average daily balance of your account. FDIC guidance says banks should help consumers minimize excessive overdrafts. If more than six fee-incurring overdrafts happen within one year, the financial institution should take meaningful action to help the customer avoid future NSFs.

This could mean eliminating “overdraft protection” so debit card transactions are declined when you have an insufficient account balance.

Do overdrafts affect your credit score?

Overdrafts are not directly reported to the credit bureaus, but if the overdraft fee is not repaid promptly and goes to collections, then it could be reported to the bureaus and ding your score. Here, your bank account would also be forcibly closed and you may have future problems getting a bank account.

How Many Times Will My Bank Let Me Overdraft?

It depends on the bank. Most will let you accrue 3 to 6 overdraft fees per day.

If you find yourself with multiple overdraft fees in a day, get your account out of the negative as soon as possible. Then, put any measure in place you can to prevent any future overdrafts from occurring, switching banks if you must.

Bottom Line

A $30 overdraft fee may seem like a drop in the hat, but it’s anything but. If you incur that fee once, you’re likely to be dinged the same amount again and again. Ten overdrafts a year could amount to $300.

There are plenty of financial institutions, from fintech companies to brick-and-mortar banks and credit unions, that don’t charge their customers NSF fees or offer free and easy ways to avoid them. If your bank does assess overdraft fees, consider making the switch to one of the banks featured here to avoid getting charged.

Our Methodology

To provide our readers with an accurate list of the best banks with no overdraft fees, we assessed dozens of banks using the criteria below:

  • Overdraft protection options: While you’re seeking a bank with no overdraft fees, it’s still beneficial to have overdraft protection options in place. We prioritized banks that offer overdraft lines of credit or transfer services from savings accounts to cover potential overdrafts.
  • Fee structure: When evaluating banks, we looked for institutions that explicitly state that they don’t charge overdraft fees. We also focused on banks with minimal account fees in general.
  • Account features: We considered the overall features of the bank accounts on offer, such as ATM access, online banking experience, and features like mobile check deposit and bill pay.
  • Minimum balance requirements: Additionally, we looked into each bank’s minimum balance requirements and favored ones that don’t require you to maintain a minimum.

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